Sogefi S.p.a.MIL: SGF

October 25, 2024 – 9M 2024 Results

· Issued by Sogefi S.p.a.

9M 2024 Results

October 25, 2024

Olivier PROUST - CFO

Maria Beatrice DE MINICIS - Head of Planning and Control

AGENDA

  • 9M 2024 Results
  • A resilient business model and a Sustainable Transformation
  • Market Outlook 2024

9M 2024: FINANCIAL HIGHLIGHTS

Revenues at €766.7m

Vs 803.9 in 9M 2023

EBITDA at € 96.7m

vs €84.4m in 9M 2023

EBIT

Net Income

FCF1 at € 19.8m

vs -€8.7m in 9M 2023

NFP (cash) at € 16.1m

vs € debt of 192.7m Sept '23

  • -4.3%at constant exchange (-4.6% at current), mainly reflecting the market decline in Europe and China slowdown in Q3. Selling prices substantially stable
  • Contribution margin € 224.8m vs € 216.6m in 9M 2023 (up from 26.9% to 29.3%)
  • EBITDA excluding non-recurring: € 101.0 m vs € 89.5m in 9M 2023
  • Fixed costs in value substantially stable vs 9M 2023, despite inflationary pressures on labor costs in certain geographical areas
  • € 38m vs € 25.3m in 9M 2023 (excluding non-recurring € 42.3m vs € 30.5m) thanks to the recovery of Suspensions margin

Net income of operating activities (Suspensions and A&C at € 15.1m vs € 8.3m in 9M 2023). Net income including the Filter disposal effect at € 149.5m

Free Cash Flow positive at € 19.8m, up vs a negative of €8.7m in 9M 2023. Improvement thanks

to Suspensions turnaround and despite of lower use of factoring

Net debt end of September 2024 at € 16.1m vs a Net debt end September 2023 of € 192.7m and € 200.7m end of 2023. Extraordinary dividend of € 109.6m paid on July 24

1.

FCF and Net debt excluding IFRS 16

3

9M 2024 : SALES BY GEOGRAPHY

constant

reference

performance

weight

9M 2023

9M 2024

change

exchange

market

vs market

based on

€m

rates

production

(bps)

2024

Europe 27

462.9

426.2

-7.9%

-7.9%

-4.9%

-300

55.6%

North America

169.4

162.0

-4.4%

-3.4%

-0.8%

-260

21.1%

South America

83.5

85.3

2.2%

0.8%

-0.6%

140

11.1%

Cina

78.1

82.1

5.1%

7.9%

2.0%

590

10.7%

India

13.1

13.1

0.4%

1.9%

4.5%

-260

1.7%

Intercompany

(3.1)

(2.0)

Total

803.9

766.7

-4.6%

-4.3%

-1.6%

-270

100.0%

  • -4.3% at constant exchange mainly reflecting the decline in Europe (-7.9%), a result affected by a difficult market (-4.9%)
  • China and South America overperforming the market
  • India substantially stable

Source: Sogefi and S&P Global (IHS) data. Passenger cars and Light commercial vehicles only.

4

9M 2024 : SALES BY BUSINESS UNIT

constant

9M 2023

9M 2024

change

exchange

€m

rates change

Air&Cooling

351.0

342.9

-2.3%

-1.5%

Suspensions

453.0

424.8

-6.2%

-6.3%

Intercompany

(0.1)

(1.0)

Total

803.9

766.7

-4.6%

-4.3%

  • Suspensions reflecting the difficult market in Europe, especially in heavy duty (-10.4%)
  • Air and Cooling with better-than-market performance in Europe

5

OUR CUSTOMERS (% of sales)

9M 2023

German Premium and Chinese OEMs gaining shares

9M 2024

6

9M 2024 : EBIT PERFORMANCE BREAKDOWN VS 2023

5.5 %

of sales

5.0 %

3.8 %

of sales

3.1%

of sales

of sales

(*) Variances calculated at stable FX

(**) Exchange rate impact net of Argentinian inflation

7

.

9M 2024 : P&L

€m

9M 2023

%

9M 2024

%

REVENUES

803.9

100.0%

766.7

100.0%

CONTRIBUTION MARGIN

216.6

26.9%

224.8

29.3%

Gross Fixed Costs

131.7

16.4%

128.9

16.8%

Restructuring

0.8

0.1%

3.3

0.4%

Exchange Differences

1.7

0.2%

1.4

0.2%

EBITDA

84.4

10.5%

96.7

12.6%

EBITDA excluding non-recurring

89.5

11.1%

101.0

13.2%

D&A

59.2

7.4%

58.7

7.7%

Write downs

-0.2

0.0%

0.0

0.0%

EBIT

25.3

3.1%

38.0

5.0%

EBIT excluding non-recurring

30.5

3.8%

42.3

5.5%

Financial results

12.4

1.5%

11.7

1.5%

Income Tax

4.6

0.6%

11.2

1.5%

Minority Interest

2.3

0.3%

2.0

0.3%

NET INCOME OF OPERATING

8.3

1.0%

15.1

2.0%

ACTIVITIES

Net income from discontinued

39.8

136.4

operations

NET INCOME

45.8

5.7%

149.5

19.5%

Higher contribution margin thanks to Squeeze

management

Fixed costs in value slightly down despite inflationary pressure on labor costs in certain geographical areas

Up 12.8%

Up 38.9%

Down despite of one-off charges connected to the early

repayment of some loans

Higher taxes reflecting progression in pre-tax results

Includes capital gain for the Filtration disposal (€ 124.5m), costs and taxes incurred to complete the transaction and the Filtration net profit up to end of8 May (€ 22.2m)

9M 2024 : FREE CASH FLOW NEW PERIMETER

€m

2023

2024

FUNDS PROVIDED BY OPERATIONS

69.2

65.1

Working Capital

-29.0

-1.8

Capex (Tangible, Intangibles & IFRS15)

-47.7

-45

Others

-1.2

1.6

FREE CASH FLOW (NET) EX DISPOSAL

(8.7)

19.8

Thanks to Suspensions turnround

After the dividends payment of € 136.7m and

NET FINANCIAL POSITION

192.7

16.1

€ 316.6 cash-in of the Filtration Disposal

(including taxes and costs)

FACTORING

63.9

52.0

Lower use of factoring

FCF and Net debt excluding IFRS 16

9

9M 2024: SUSPENSIONS

SALES (€m)

EBITDA (€m) excluding non-recurring

EBITDA Margin

7.8%

10.1%

  • 9M 2024 down 6.3% at constant (-6.2% at current exchange) mainly affected by the difficult market in Europe especially in heavy duty
  • Sales positive trend in China (+38.9% at constant exchange)
  • In South America sales up 2.2% and in India substantially stable
  • EBITDA growth in absolute value and in %
  • 9M 2024 contribution margin up in % (from 25.7% to 28.9%) and in value (+5.3 % vs 9M 2023) thanks to squeeze management
  • Margin improvements thanks to the actions

implemented in Europe (concentration of production

capacity after footprint optimization and Romania

EBITDA at breakeven)

10

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